Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/268935 
Year of Publication: 
2022
Series/Report no.: 
JRC Working Papers in Economics and Finance No. 2022/9
Publisher: 
European Commission, Ispra
Abstract: 
This study investigates to which extent firms operating in sectors more integrated into Global Value Chains (GVC) are more likely to be involved in cross-border Mergers and Acquisitions (M&A) flows. We focus on firms acquired in the EU27 during the period 2008-2020 employing a gravity model. Results show that cross-border investments are indeed associated with sectoral GVC participation, in particular the dependence on intermediate products supplied by other countries (i.e. backward GVC participation) of the target country-sector is positively correlated with M&A flows. This evidence is confirmed when the acquired firm operates in manufacturing or high-tech sectors, and when the investor originates from OECD countries. In addition, results show that companies from countries suppling inputs to other countries are more likely to pursue a cross-border acquisition.
Subjects: 
Global Value Chains
Mergers and Acquisitions
Global Economy
Gravity model
EU firms
JEL: 
F21
F23
G34
Creative Commons License: 
cc-by Logo
Document Type: 
Working Paper

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